[dtube] Technical Analysis - Effective Tool or Mumbo Jumbo Nonsense?

in cryptocurrency •  7 years ago  (edited)


One topic that's always the subject of fierce debate is technical analysis.

Some believe it to be an effective tool for determining probabilistic outcomes based on historical occurences. Others consider it to be nothing more than hocus pocus, mumbo jumbo nonsense.

What's the truth? That's what I'll be discussing in this video.

DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.


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I don't believe TA is a very good tool when the market is so volatile and when most of these companies have no revenues, and they are just an idea

Interesting, i think even if you are super know-it-all about finances, TA can only get you so far and its mostly gambly stuff.

To me, fundamental analysis will be the most reliable analysis if properly examined and carried out, though technical analysis work fine for trader, but I choose economics analysis.

There are so many people following technical analysis and stochastics that the "voodoo" happens naturally.

The analysis fulfills itself, by nature of the way humans react. Herd mentality, so to speak.

You mention how the how the human psyche is hardwired through evolution to react certain ways and can be reasonably expected to continue reacting that way. Since market trends are based on those reactions, do you think that the introduction of AI trading will strongly affect our ability to rely on past trends? I suppose it could be argued that our human biases will be learned by the AI, but I feel like that's more of a short term problem as AI gets more advanced.

That is a fantastic question that I don't know the answer to 😆

Is there free will or are we deterministic machines?
To be or not to be?
Is technical analysis valid or just tea leaves?

These are the unanswerable questions.

I take the middle road, it is only one factor in making any buy or sell decision.

I think technical analysis currently is not as effective as it is used in stock market, but it does spot out strong support and resistance positions sometimes.

Trying to rationalise a completely irrational market seems silly to me. But hey, Each to their own I guess

I don't put any reliance on technical analysis. It's from a different paradigm. It comes from the forex of fiat currencies..I'm afraid crypto is going to rise when mainstream confidence grows, if it grows. Bitcoin will survive as a storage of wealth...
Buy tokens that have intrinsic value..If fiat can do the same job then people won't change..the token must have some function..
Buy tokens from great projects and hold them for the long term..
Don't get caught up in the hype and pseudo science..

Cool Video Louis,

I'm going to be putting out daily videos on the crypto market here soon too. So if anyone is interested in learning more, feel free to follow!

Traditional TA is a food tool, but outside factors like politics and news has to be considered as well.

Tis mumbo jumbo.

TA has its place when looking for an entry into the market but you can't beat common sense.

almost everyone fail to predict the btc price at december 2017, and everyone fail to predict price at now march 2018